Why Is a Decrease in Accounts Receivable Added to Net

question 26

Multiple Choice

Why is a decrease in accounts receivable added to net income when determining cash
Provided by operating activities?

• A)Cash collections from customers were greater than the sales generated.
• B)Cash collections increased due to an increase in sales.
• C)Cash collections decreased due to a decline in sales.
• D)Cash collections from customers were less than the sales reported.

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Definitions:

Harlow's Study

A series of experiments by psychologist Harry Harlow, highlighting the importance of caregiving and companionship in social and cognitive development.

Rhesus Monkeys

A species of Old World monkeys that is very commonly used in medical and psychological research due to its close genetic similarity to humans.

Permissive, Neglectful

Parenting styles where permissive refers to a low-demand, high-response approach and neglectful indicates a lack of both demands and responses to a child's needs.

Overly Involved

Excessive engagement or participation in a particular activity, situation, or relationship, often to the point of negative consequences.